What are the requirements for the transferee's application for consent to transfer a Counselor Realty franchise?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
entity, by contract or otherwise.
- 9.2 Other Conditions to Transfer. You must apply for our consent by submitting written notice of the pending transfer, with a complete application, signed by you and by the proposed transferee, and payment of the transfer fee, at least 60 days before the proposed transfer date. The transfer fee is $2,000 and applies to all transfers (excluding transfers described in, and in accordance with, the second to last sentence of Section 9.1). We may specifically withhold consent if: (i) you do not pay all amounts you owe to Counselor or its affiliates or to your suppliers; (ii) you (or the transferee) do not complete the repair, maintenance or upgrade of the Business' facility, fixtures, equipment, and signage to then-current System standards; or (iii) all shareholders or owne
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, if a franchisee wishes to transfer their franchise, they must apply for consent from Counselor Realty. The franchisee needs to submit a written notice of the pending transfer, along with a complete application signed by both the current franchisee and the proposed transferee. This application must be submitted at least 60 days before the intended transfer date. Additionally, the franchisee must pay a transfer fee of $2,000, which applies to all transfers except those described in the second to last sentence of Section 9.1.
Counselor Realty may withhold consent if the franchisee has not paid all amounts owed to Counselor Realty, its affiliates, or suppliers. Consent may also be withheld if the franchisee or transferee has not completed the necessary repairs, maintenance, or upgrades to the business's facilities, fixtures, equipment, and signage to meet the current system standards. Furthermore, all shareholders or owners of the transferee must execute the guaranty of the new agreement.
These requirements ensure that Counselor Realty maintains control over who operates franchises under its brand name and that the new franchisee meets the company's standards. This process protects the brand's reputation and the interests of other franchisees within the Counselor Realty system. The 60-day notice period allows Counselor Realty ample time to review the application and assess the transferee's qualifications.